prize-linked savings

In other countries, prize-linked savings accounts are a popular vehicle used to encourage low-income people to build nest eggs. The premise is simple: saving money enters customers into a lottery, with relatively modest prizes. Since the accounts became legal in the U.S. in 2014, some banks have launched their own versions, and now Walmart and its prepaid debit cards are joining the party. [More]

Would you pay to enter a sweepstakes that it’s impossible to lose? Late last year, our representatives in Congress and the President all agreed on something, a bill called the American Savings Promotion Act. It made prize-linked savings accounts, something that serves as a combination lottery and savings vehicle, legal for United States banks. [More]

How can you spice up a routine visit to the ATM? Easthampton Savings Bank in Massachusetts is promoting a new branch by turning its ATM into a sort of no-lose slot machine. They call it the “ATM Gone Mad,” because sometimes it will dispense $50 bills in place of the normal $20 bills. Cute promo. One local blogger finds it amusing that this is going on around the same time that the nearby city of Springfield is considering a downtown casino proposal from MGM Grand. All of the fun of gambling, none of the risk of financial ruin. But what’s the fun if there’s no chance of destroying your family’s future?